If a CEO is loading up on shares in their own company, it’s often worth taking a closer look. CEOs tend to be way ahead of analysts and portfolio managers when it comes to the performance of their companies and their stock purchases can provide valuable trading signals.
In this report, we are going to highlight some interesting CEO buying at Heijmans NV (HEIJM:NA). Heijmans is a Dutch company that’s engaged in property development, construction and technical services, and infrastructure. Founded in 1923, it now employs over 4,500 people and has a wide network of dedicated partners and suppliers. The company is listed on the Euronext Amsterdam stock exchange and currently has a market capitalization of €289.97 million.
Heijmans NV: Insider Buying
Our insider transaction data shows that on April 19 and 29, Chairman and CEO Ton Hillen bought 12,800 shares at an average price of €13.86 per share. This trade cost the insider €178,451 and increased the size of his holding to 65,771 shares.
The Largest Insider Purchase in Over a Decade
This trade is worth highlighting for a couple of reasons. Firstly, it’s large in relative terms. Our data shows that it represents the largest purchase from an insider here in over a decade.
Secondly, Mr. Hillen has demonstrated the ability to make well-timed purchases in the past. In April 2020, for example, he snapped up 13,000 shares at a price of €5.67 per share. Since then, the stock has risen as high as €15.91.
It’s worth pointing out that Mr. Hillen has considerable company experience. He has worked at the company since 1992 and has served as Chairman since April 2012. In December 2016, he was appointed CEO. So, he is likely to have a very good understanding of Heijmans’ prospects.
In February, Heijmans posted a solid set of results for 2021.
For the year, profit after tax amounted to €50 million, an increase of 25% on the year before. Meanwhile, earnings per share came in at €2.24 versus €1.85 a year earlier. At the end of the year, the group’s order book was €2.06 billion, up from €1.95 billion at the end of 2020.
Looking ahead, management was optimistic in relation to the company’s prospects, noting that factors such as the housing shortage, the energy transition, and climate change are developments that are likely to have a major positive impact on the sectors it operates in.
“Armed with a well-filled and high-quality order book, we are in a solid position for 2022 and we expect to increase revenues whilst delivering a comparable level of underlying EBITDA,” said Mr. Hillen. “The government’s ambitions for the years after 2022 are quite promising. We are looking forward with a great deal of interest to see how these ambitions get translated into concrete plans that we can then realize together,” he added.
In light of the confidence from the CEO, we see the insider buying here as a bullish indicator.